IoT impacts many different industries, including retail, automotive, smart devices, and even the financial sector. Financial services can benefit greatly from this technology, let’s see how.
In 2018, IoT spending in the banking and finance industry averaged roughly $153 million. IoT saves financial companies a lot of time and money by gathering and transferring data. Real-time data gives banks a huge advantage since they can quickly update customers with relevant information and quickly make important financial decisions. It can also benefit investment decisions since relevant data can be gathered quickly.
Of course, there are issues with security and fraud when it comes to an individual’s account. According to Google, Gmail engineers have blocked over 15 million COVID-19 phishing emails per day. Because of this, financial companies are cracking down on fraud detection and investing immensely in IoT to help prevent some of these scenarios from occurring.
IoT can gather user data and analyse the activity, the data is then sent over to the cloud, where it’s matched to the user’s typical behavioural patterns. If any unusual data has been detected, the user will be alerted, and the account will become temporarily disabled.
Another application is tracking the real-time state of the market. IoT has the ability and potential to make accurate business predictions and track company behaviors. This puts investors at a higher advantage and is completely changing how the financial world operates. In the future, many aspects of investment banking will be automated and more user-friendly. Financial technology leaders believe IoT trading will be performed globally using bitcoin, mobile apps, and smart sensors.
Customer experience can also be improved through IoT. Keeping customers happy should always be in your best interest. Because of smart IoT devices, a client at a bank can monitor lines at the branch online or schedule cash withdrawals and complete the transactions at the nearest ATM.
By implementing IoT applications in financial services, gathering and analysing data can be handled much faster and more efficiently. IoT personalizes the customer’s experience and provides them with real-time data to make more informed decisions. Regarding managing money and developing reports, IoT handles all of it with ease and provides a seamless experience for customers.
IoT is prevalent in many ways and has greatly impacted the financial and banking sectors. In the future, it will continue to improve the way data is gathered and distributed, provide an overall better customer experience, and can influence trading and investment decisions that can positively affect individuals and businesses in the long term.